A working paper exploring the idea that information equilibrium is a general principle for understanding economics. [Here] is an overview.

Saturday, July 20, 2013

The price level surface with real variables

In the continuing series of pretty pictures, here are the graphs of the price level surface from this post with the independent variables being real GDP (GDP/price level) and the real MB (MB/price level). They are normalized to the value of the dollar in 1992 because that happens to be where log P goes through zero in this fit: